THE Land Transportation Franchising and Regulatory Board on Monday suspended the accreditation and operations of ride-sharing app Uber for a month after violating the agency’s directive last month.
“After a thorough and painstaking deliberation, the Board constrained [sic] to impose the penalty of one month suspension on the accreditation of the respondent Uber System Inc. and is hereby ordered to cease and desist its operation of their [sic] online booking application during the period of suspensions,” the agency said in an order dated Aug. 14.
According to the agency, the order will take effect immediately.
LTFRB said it found out that USI continued to activate accounts despite the directive of the agency.
Last July 11, LTFRB issued an order directing Uber and Grab to stop accepting new transportation network vehicle service applications and submit an updated list of the accredited TNVS as of June 30, 2017.
LTFRB also ordered the two ride-sharing apps to stop acceptance of additional accreditation of TNVS and/or activation of their accounts into their respective systems.
The order further said the USI would be responsible for all its accredited “colorum” TNVS apprehended during the suspension period should it be discovered that Uber was accepting passengers using their mobile application.
In a statement, Uber said it was still studying the order and said it would advise its operators and drivers "as soon as we can." There were 30,000 active Uber drivers as of July, down from 66,000 drivers last year. Of the total, 2,000 TNVS operators had certificates of public convenience.
Copies of the order were furnished to Metro Manila Development Authority, Land Transportation Office, and the Philippine National Police Highway Patrol Group for the enforcement of the order.
LTFRB earlier ordered Grab and Uber to pay P5 million penalty each for violations of the terms of their respective accreditations.